Mortgage Broker

An intermediary that brings together mortgage lenders and mortgage borrowers without using its own funds in originating the mortgage. A mortgage broker’s duty includes passing all the paperwork from the borrower to the lender to facilitate underwriting of the mortgage and approval thereof. Mortgage funds will then be lent to the borrower in the name of the lender. The mortgage broker will then collect a yield spread premium or origination fee from the mortgage lender as compensation for services rendered.

Primarily representing the borrower, the aim of a mortgage lender is to understand the borrower’s needs and then identify the best possible mortgage lender for them. A mortgage broker gets customers through referrals or by marketing their services directly to the borrowers.

How To Select The Best Mortgage Broker

There are several mortgage brokers out there and the very first step in selecting the best mortgage broker would involve making inquiries from your family members and acquaintances that may have made purchases through a mortgage broker.

Conduct research over the internet and make inquiries directly from potential brokers over the phone where necessary. If the broker presents a special deal to you, then be sure to inquire about any special conditions.

Find out whether the mortgage broker has any recommendations from previous customers. Just in case anything goes wrong in future, find out whether the mortgage broker is a member of an independent complaints scheme.